"Industry Insights"

The North America awnings market size was USD 2.47 billion in 2015. Increasing consumer preference for the outdoor deck and seating space construction units is expected to drive demand for retractable products in residential application over the forecast period. In addition, product innovation to offer additional features including remote control assistance, sun and wind sensors are expected to have a positive impact on the industry growth over the next eight years.

Stationary awnings are expected to gain high market share in various commercial applications including hotels, resorts, and retail stores applications owing to their low cost and high strength. In addition, ease in installation, low maintenance and high durability offered by the product is anticipated to open new avenues for the growth over the forecast period. However, the presence of substitutes including blinds, shutters, and canopies is likely to hamper growth over the forecast period.

U.S. awnings market revenue, by product, 2013 - 2024 (USD Million)

The industry in North America is growing rapidly which has led many key players such as Craft-Bilt, and SunSetter adopted the merger & acquisition (M&A) strategy to increase their market presence. High capital cost coupled with the need for skilled human resource is expected to hamper entry of new market entrants which is expected to impact growth over the next eight years.

"Retractable segment to be the fastest growing product owing to high penetration in residential segment"

In terms of product, retractable segment was the largest and was valued over 1.50 billion in 2015. Growing demand for the product in residential applications is expected to be the key driver for the industry growth.

Retractable products are further segmented as patio, traditional and vertical awnings. Patio segment dominated the industry accounting for over 70% of the overall revenue share in 2015. Increasing installation of the product in various applications such as front doors, outdoor decks, and seating spaces is expected to have a positive impact on the industry growth over the forecast period.

Stationary metal segment accounted for the largest share in the stationary segment and is expected to grow at a CAGR of just under 4% from 2016 to 2024. Growing demand for the product in the construction of outdoor parking and backyards of commercial buildings is anticipated to propel demand.

Stationary awnings demand is expected to grow at a significant rate owing to its increasing demand in hotels, retail stores, cafes, and restaurants. Furthermore, as these products are printable, they can be printed with the name and logo of the business entity. As a result, demand for these products is expected to grow in commercial applications over the next eight years.

"Residential sector is expected to dominate the North America market"

The demand for the product in North American residential sector accounted for over USD 1.5 billion in 2015. Growing residential construction industry in the region coupled with growing consumer preference for outdoor decks and seating areas is expected to drive demand over the forecast period.

Installation of stationary fabric and metal awnings for doors and windows is expected to be a contributing factor for market growth. Higher installation in the commercial sector is expected over the forecast period owing to the application in retail store, hotels, restaurants, and cafés. The rapid commercial growth of North America is expected to open new avenues for various industries to including hospitality, retail, and others, which are lucrative sectors for market growth.

"U.S. dominated the market in North America owing to high demand from residential and commercial segments"

The demand for the product in U.S. was valued at over USD 1.5 billion in 2015. Patio awnings are expected to dominate the market in U.S. owing to the growing demand in the residential sector and in resorts in the commercial sector. The retractable segment is expected to witness significant growth owing to the consumer preference, ease of installation and high-performance efficiency of the products. However, the manufacturers are witnessing difficulty in keeping up with the constant changing consumer preferences which in turn is expected to restrain growth in the country.

The demand for the product in Mexico is expected to grow significantly over the forecast period owing to the growing application in the commercial sector. The stationary segment is expected to gain market share owing to use as shades in school and college vehicle parking and other commercial places. Furthermore, growing penetration of polycarbonate awnings in the country is likely to propel growth for stationary products over the next eight years.

"North American market is highly competitive owing to the presence of large number of local manufacturers"

Key players involved in the manufacturing of the product have their distribution and supply facilities established across the region. The manufacturers are likely to reduce product cost to tap the increasing demand from residential consumers.